Check Sako Company's Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow Selling price per unit on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) Capacity in units $ $ $ 48 17 8 57,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 9.000 speakers per year. It has received a quote of $28 per speaker from another manufacturer Sako Company evaluates division managers on the basis of divisional profits Required: 1. Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 9000 speakers from the Audio division to the Hi-Fi Division? d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi Division? d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. LER Pro 88 Neyt Requirea: 1. Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi Divisie d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi Divisi d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 10 Req 1D Req 2A Reg 2B Req 2c Req 2D From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the HI-FI Division? Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. Lowest acceptable transfer price Regt Req 1B > 00 Requirea: 1. Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? if left free to negotiate without interference, woul you expect the division managers to voluntarily agree to the transfer of 9.000 speakers from the Audio Division to the HI-F1 Division? d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference wou you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi Division d. From the standpoint of the entire company, should the transfer take place? Book int Complete this question by entering your answers in the tabs below. mt Reg 1A Req 18 Realec Req 1D Reg 2A Reg 2B Req 2C Req 2D nces What is the range of acceptable transfer prices (if any) between the two divisions? Ir left free to negotiate without Interference, would you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the Hi-Fi Division? Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. Identify the range of acceptable transfer prices (if any): There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below: 3 Transfer price s Are the managers likely to agree on a transfer price? OYes Requirea: 1. Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, wo you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the HI-FI Division d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference, w you expect the division managers to voluntarily agree to the transfer of 9.000 speakers from the Audio Division to the Hi-Fi Divisio d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Req 1C Req 10 Reg 2A Reg 2B Req 2c Req 2D From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the HI-FI Division? Assume the Audio Division is selling all of the speakers it can produce to outside customers. Lowest acceptable transfer price Requirea: 1. Assume the Audio Division is now selling only 48,000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference you expect the division managers to voluntarily agree to the transfer of 9.000 speakers from the Audio Division to the Hi-Fi Divi d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interference you expect the division managers to voluntarily agree to the transfer of 9.000 speakers from the Audio Division to the Hi-Fi Div d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 10 Req ID Req 2A Reg 28 Req 2C Req 2D From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? Assume the Audio Division is selling all of the speakers it can produce to outside customers. Highest acceptable transfer price a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Divisio b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interferen you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the HI-FID d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Divisie b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audi Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interfere you expect the division managers to voluntarily agree to the transfer of 9.000 speakers from the Audio Division to the Hi-Fi d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 10 Req 2A Reg 28 Reg 2 Req 2D What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without Interference, would you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the HI-FI Division? Assume the Audio Division is selling all of the speakers It can produce to outside customers. Identify the range of acceptable transfer prices (if any): There is not a range of acceptable transfer prices There is a range of acceptable transfer prices as shown below: Transfer price 2 2 Are the managers likely to agree on a transfer price? Yes Prev 8 of 8 Next le how selling only 48,000 speakers per year to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Divisie b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audi Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interferem you expect the division managers to voluntarily agree to the transfer of 9,000 speakers from the Audio Division to the HI-FI d. From the standpoint of the entire company, should the transfer take place? 2. Assume the Audio Division is selling all of the speakers it can produce to outside customers. a. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Divis b. From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Au Division? c. What is the range of acceptable transfer prices (if any) between the two divisions? If left free to negotiate without interfer you expect the division managers to voluntarily agree to the transfer of 9.000 speakers from the Audio Division to the HI-FI d. From the standpoint of the entire company, should the transfer take place? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 10 Req 2A Reg 28 Req 2c Req From the standpoint of the entire company, should the transfer take place? Assume the Audio Division is selling all of the speakers it can produce to outside customers. Transfer should take place. Transfer should not take place.